Sept. 22 (Bloomberg) -- The Commodity Futures Trading Commission is ``closely monitoring'' the biggest ever gain in oil prices on the New York Mercantile Exchange for potential manipulation, the agency's acting chairman said.

``We are working closely with Nymex compliance staff to ensure that no one is taking advantage of the current stresses facing our financial marketplace for their own manipulative gain,'' Acting Chairman Walter Lukken said today in a statement.

Crude oil futures contracts rose more than $25 a barrel during trading on the Nymex. Oil settled at $120.92 a barrel, up 17 percent for the day.

The commission took what it called the ``extraordinary step'' earlier this year of publicly stating it began a nationwide investigation last December into trading, transportation, storage and purchase of crude oil.

Now, I know that with any regulatory agency under this maladministration, especially in the energy sector, the first reaction one would have is to say "Yeah. Whatever.". Me too. That said, this is an announcement you would not have seen a few months ago.

Worms HAVE turned. Not enough, not soon enough for my tastes, but they have turned.

But who was the short? Just some hot money funds (about to go under now?) or also the Federal Governement?

And if it's the Gov that has been seriously shorting, did it bring this Wall Street collapse by shorting the last remaining investment opportunity, the commodity market? Any case, about a week ago there were five big investment banks, today none remains. If that is the case, it would be incorrect to call this shooting one's own leg. This shot was wanked in the pocket and hit the nuts.

And they got caught with the dollar tanking over the weekend as more people actually read and came out against the bailout bill as written by the Pugs.

Everyone assumed BushCo could panic Congress into rubber-stamping the thievery, and when they balked, the dollar got beat up overseas.

By the time the NYMEX opened, it was too late for the shorts, and they got hammered.

I hope that Congress looks into these unregulated hedge funds. I swear some of them were moving in tandem shorting the financials and beating them up even further than the market felt it should go. I bet they are steaming at the "Do Not Short" list issued by the SEC.

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion
board, visitors agree to abide by the rules outlined on our Rules
page. Messages posted on the Democratic Underground Discussion Forums are the
opinions of the individuals who post them, and do not necessarily represent
the opinions of Democratic Underground, LLC.